Static interference

The streaming-music service may have rejected a $3.4 bln offer from Liberty Media, satellite radio Sirius XM’s owner, saying it’s worth a third more. The financial logic of Liberty’s purported bid looks shaky. A higher price for Pandora would probably destroy value for any buyer.

Context News

Liberty Media Chief Executive Greg Maffei offered "in recent months" to buy streaming-music service Pandora for $15 per share or about $3.4 billion, according to a July 21 report in the Wall Street Journal citing people familiar with the matter. Liberty Media owns about 64 percent of satellite-radio service Sirius.

Pandora's board of directors turned down the offer believing it was "a fishing expedition." Directors think the company is worth around $20 per share, the report said.

Pandora had approached Apple and Amazon about a potential acquisition earlier this year, the Journal said.